quarterly, page-3

Thanks GS - agree with your assessment. Very happy with the quarterly report overall. Indication that the management of VlakVk & Ferreira is professional and targeting greatest levels of efficiency. The adjustments made to both mines in the Dec 2010 quarter will reflect some more substantial production figures in this current quarter. I was expecting to see some cashflow & revenue figures - so that aspect was a bit disappointing. Perhaps our resident accountants can do the sums from the FOB/FOT costs given and the average sale prices received?

As well as the potential acquisitions GS mentioned, I liked this:

During the March 2011 quarter the Company looks forward to:-

- The first full quarter for export thermal coal sales from the Ferreira Mine and Delta Processing Operations

- An update on major logistics developments in respect of port allocation for the export of increased thermal coal production

- Updated reserve and resource statement for Continentals South African projects

- Mobilisation of contractors and commencement of mine development at the Penumbra Coal Project

- Progress on the Bankable Feasibility Study for the De Wittekrans Coal Project

- Mobilisation of drilling contractor to Botswana projects and commencement of detailed geological modelling of our tenements in Botswana with existing borehole data obtained during recent visit

- Submission of the Companys tender to participate in coal exploration and development of Kenya's Mui Coal Basin